what do means by company law and write advantages
Hello,
Company law refers to the legal framework that governs the formation, operation, and dissolution of companies. It includes regulations and guidelines on corporate governance, shareholders' rights, directors' duties, and compliance requirements.
Advantages of company law:
1) Limited Liability:Protects shareholders by limiting their liability to the amount invested in the company.
2) Legal Entity: Allows the company to own property, sue, and be sued independently of its owners.
3) Perpetual Succession: Ensures the company's existence is not affected by changes in ownership or management.
4) Capital Generation:Facilitates raising capital through the issuance of shares and securities.
5) Regulatory Compliance:Promotes transparency and accountability, enhancing investor confidence.
6) Governance Structure:Establishes a clear framework for managing and operating the company.
Hope this helps,
Thank you